Exam 16: Retained Earnings and Earnings Per Share

Noncontrolling interest reported on the balance sheet represents the amount of the net assets of a company that are owned by shareholders other than the common shareholders of that company.

In the determination of the diluted earnings per share, convertible securities are

Which statement best reflects the issues associated with the computation of diluted earnings per share?

West, Inc. determined the following information concerning its common stock during 2016: January 1 80,000 shares outstanding April 1 Issued a 20% stock dividend July 1 Issued an additional 2,900 shares October 1 Issued a 2-for-1 stock split December 1 Reacquired 5,000 shares Required: What should West, Inc. use as the denominator for its basic earnings per share calculation for 2016? If necessary, ro number.

On January 1, 2016, Laura Corporation had 18,000 shares of common stock outstanding, and reacquired 2,000 shares on July 1. The company earned net income of $110,800 and paid a cash dividend on its preferred stock of $36,000. What was the basic earnings per share for the year?

The denominator in the calculation for the price/earnings ratio is basic earnings per share.

A dividend that represents a return of capital rather than a distribution of retained earnings is called a

The Annapolis Corporation's stockholders' equity accounts have the following balances as of January 1, 2016: Annapolis engaged in the following dividend transactions during 2016, 2017, and 2018: 2016: Dividends are in arrears for 2014 and 2015. On December 1, 2016, the annual cash dividend plus the dividends in arrears were declared on the preferred stock. In addition, a $1.50 per share dividend was declared on the common stock. The dividends were paid on December 31, 2016. 2017: On December 1, 2017, the annual cash dividend on the preferred stock was declared. The dividend was paid on December 31, 2017. On December 10, a 30% stock dividend was declared on the common stock, distributable on January 25, 2018. The market price per share for the common stock on December 10, 2017, was $28. 2018: On January 25, 2018, the stock dividend declared on December 10, 2017, was issued. On December 1, the annual cash dividend on the preferred stock was declared; it is payable on January 15, 2019. In addition, on December 1, a 10% stock dividend was declared on the common stock, distributable on January 20, 2019. The market price per share for the common stock on December 1, 2018, was $23. No other stock transactions took place during 2016, 2017, or 2018. Required: Prepare the entries to record the dividend transactions for 2016, 2017, and 2018. Do not record any transactions for 2019.)

On January 1, James Corporation had 60,000 shares of common stock outstanding. On March 1, the company reacquired 12,000 shares, and it declared a 10% stock dividend on October 1. What is the denominator in the earnings per share calculation?

On October 1, 2016, White Company declared a property dividend payable in the form of marketable equity securities classified as "available for sale" for financial accounting purposes. The marketable equity securities will be distributed to the common stockholders on December 1, 2016. The investment in equity securities originally cost White $510,000 on August 1, 2016. The investment's fair value on various dates is as follows: The amount credited to Gain on Disposal of Investments resulting from this dividend transaction should be